BMW Wrests Rolls-Royce Name Away From VW - The New York Times The New York Times World |BMW Wrests Rolls-Royce Name Away From VW Search BMW Wrests Rolls-Royce Name Away From VW By TOM BUERKLE and INTERNATIONAL HERALD TRIBUNE JULY 29, 1998 Continue reading the main story LONDON— The long battle for control of Rolls-Royce Motor Cars Ltd., which appeared to have been won by Volkswagen AG last month, took an extraordinary turn Tuesday when VW announced it would be compelled to let part of the British luxury automaker, including the cherished Rolls-Royce trademark, go to its bitter rival BMW. The deal was the result of complex three-way negotiations between the two German automakers and Rolls-Royce PLC, the aircraft-engine maker that owns rights to the famous double-R trademark and had supported BMW's failed bid for Rolls-Royce Motor Cars. The deal will require four years of intricate cooperation between BMW and Volkswagen on production and distribution, before leaving BMW with control of the Rolls-Royce trademark and automobile models beginning in the year 2003.

Volkswagen will be left with the Bentley models and the factory in Crewe, England, where both car lines are currently produced. For Volkswagen, which had played down questions about the trademark dispute last month when it bought Rolls-Royce Motor Cars for £430 million ($712.7 million) from Vickers PLC, the settlement was an acknowledgment of an embarrassing and costly misjudgment. Continue reading the main story "I would have preferred to keep both brands," said Ferdinand Piech, the ambitious chairman who has sought to extend Volkswagen's dominance from small cars like the Golf to the top of the luxury ladder. If he had sorted out the trademark and parts issues earlier, "the price would have been much lower than Volkswagen finally paid," he acknowledged. Advertisement Continue reading the main story The deal also followed some top-level political pressure, a fact that underscored the close links between government and corporate boardrooms in Germany.

Gerhard Schroeder, the premier of Volkswagen's home state of Lower Saxony and the Social Democratic candidate to run against Helmut Kohl for chancellor, and Edmund Stoiber, the arch-conservative premier of BMW's home state of Bavaria, had urged Volkswagen and BMW to make peace rather than embark on a lengthy court battle over trademark rights that could damage both companies. The two politicians even signed the agreement along with Mr. Piech and Bernd Pischetsrieder, chairman of BMW, whose full name is Bayerische Motoren Werke AG, at a Bavarian golf course early Tuesday morning. "They like that we didn't use a lawsuit," Mr. Piech said. The settlement ended a 10-month battle for control of Rolls-Royce Motor Cars, a unique prize in the rapidly consolidating automobile industry because its proud heritage, reputation for quality and exclusivity command prices ranging up to £233,000 a car. Both VW and BMW are seeking to compete in every car category, from compact to super luxury, a strategy embraced by Mercedes-Benz with its decision Tuesday to build a rival to Rolls-Royce under the Maybach brand. (Page 11) Despite the expression of regret about the price, Mr.

Piech defended the deal with BMW. He contended that Volkswagen's target all along had been Bentley, which it wants to expand by adding midsized and sport models. But analysts questioned whether a Bentley separated from the Rolls-Royce name would carry the same cachet. "All they were buying at the end of the day was the brand," said Mark Little, an automotive analyst at BT Alex. Brown. "Without the brand, they've wasted a lot of money." In contrast to the tight-lipped Mr. Piech, Mr. Pischetsrieder grinned broadly at a news conference here. Asked what led to the settlement, he quipped, "possibly my charm." In truth, Mr. Pischetsrieder had much more going for him than his wit. BMW cooperates with Rolls-Royce to build engines for regional aircraft and business jets. Thanks to that relationship and BMW's existing status as a luxury carmaker, Rolls-Royce was determined to see BMW obtain the trademark. Rolls-Royce has retained rights to the trademark since 1971, when Rolls-Royce's aircraft engine and automobile businesses were split as part of a government nationalization that rescued the company from bankruptcy.

In addition, BMW has cooperated closely with Rolls-Royce Motor Cars, supplying engines and other parts that account for roughly half the component value of Rolls-Royce vehicles. BMW threatened to cut off supplies within a year after losing the battle for control, a move that threatened Volkswagen's ability to sustain production and frightened customers. Graham Morris, the chief executive of Rolls-Royce Motor Cars, said orders had plunged by 30 percent in the last six weeks because of uncertainty over future production. Please verify you're not a robot by clicking the box. Invalid email address. Please re-enter. You must select a newsletter to subscribe to. Sign Up Privacy Policy Under Tuesday's agreement, BMW will pay £40 million to Rolls-Royce for the trademark; lease the brand name through the year 2002 to Volkswagen and continue to supply parts. Beginning in 2003, BMW will take control of Rolls-Royce Motor Cars, while Volkswagen will become the owner of Bentley Motor Cars Ltd. and the Crewe factory. That plant will continue to turn out the Rolls-Royce Silver Seraph for BMW, however, during that model's lifetime. Advertisement Continue reading the main story Mr.

Pischetsrieder said BMW would look to build a factory in England to assemble future Rolls-Royce models. That would pose a big challenge considering that the tradition of handcraftsmanship by the 2,500 workers at Crewe is a big factor in the Rolls-Royce image. And the contrasting marketing strategies of BMW and Volkswagen could cause conflicts over distribution, even though the two companies said they would jointly use the existing dealer network at least through 2003. Volkswagen wants to increase production to 10,000 Bentleys a year. In 1997, Rolls-Royce sold just more than 1,900 cars, of which 70 percent were Bentleys. Mr. Pischetsrieder vowed to avoid any big expansion at Rolls-Royce. "We want to maintain the exclusivity of the brand name," he said. Analysts' perception that BMW may have gotten the better part of the arrangement was reflected in the stock market.

The shares of BMW rose 37 Deutsche marks, to 1,745 DM ($976.22), in Frankfurt, while those of VW fell 3.5 DM, to 166 DM. The decline in VW's stock came even though the company also reported a 70.3 percent gain in its earnings for the first half of 1998 on Tuesday. VW's net profit rose to 831 DM in the period from 488 DM a year earlier, helped by strong sales in Europe and North America, according to Reuters. Sales rose 16.7 percent, to 65.97 billion DM. "For the full year 1998, we expect further profit improvements," the company said. The company's vehicle sales in the period rose 7.6 percent, to 2.35 million units, including a 10.2 percent rise in Germany. Vehicle production climbed 13.5 percent, to 2.41 million, including a 13.5 percent rise in domestic production.

The production total included 1.54 million Volkswagen cars, 6.4 percent more than in the first half of 1997, and 307,163 Audis, up 11 percent. Also included were 226,914 vehicles from VW's SEAT unit in Spain, 215,906 from its Skoda unit in the Czech Republic and 118,466 Volkswagen trucks. In Germany, the company's market share rose to 27.6 percent from 27.1 percent. The United States, where VW's sales have been recovering from weakness in the early part of the 1990s, again provided strong growth, with first-half VW brand sales rising 50 percent, to 104,018 vehicles, and Audi sales increasing 20 percent to 20,410.

Advertisement Ramesh Babu, the barber who owns a Rolls Royce Ramesh Babu, the barber who owns a Rolls Royce WhatsApp Leonard Willoughby said, “As you begin to live according to your own guidance and your own daring everything changes completely.” Ramesh Babu, the barber who became a millionaire, did exactly this when he was shaping his dazzling destiny. Stories of personal perseverance, the ones where heroes overcome severe obstacles and achieve dizzying heights of success, have been around since the beginning of time but they never get old. They inspire us and inflame our passions, making us believe we too can follow suit. Ramesh Babu bought a Maruti Van with his meagre savings in 1994. By 2004, he had a fledgling car rental business with seven regular cars. In 2014 he has a fleet of 200 cars. What is even more extraordinary is the 75 luxury cars on the fleet- a range of Mercedes, BMW’s, Audi’s, five and ten seater luxury vans and, his ultimate pride, a Rolls Royce. Much of Ramesh Babu’s early life was spent in a struggle for survival.

Now, ensconced in the lap of success, he remains true to the vocation of his heart- a barber. Babu took up to sniping locks in high school, a profession he inherited from his father, to keep his family afloat. It is one that, even now, he does with great aplomb. He charges only hundred rupees for his services. He has been featured in television channels and newspapers all over the country. His phenomenal success coupled with his disarming humility has earned him the moniker, ‘Millionaire Barber’. It is the title he used while giving a TED talk earlier this year. This has made him something of an urban legend. Here Ramesh Babu, the Millionaire Barber, shares his utterly inspiring story. You may also want to read Rs 5000 to Rs 5 crore: An Indore boy’s graduation from a hacker to an entrepreneur Difficult Beginnings: I was born in a poor family. My father was a barber. He passed away in 1979, when I was just seven years old. My mother started working as a maid servant to make ends meet. My father had left behind a saloon business on Brigade road which my uncle took to running.

He would give us five rupees a day from that. Five rupees, even in those days a pittance, was too less to see to me and my brother and sister’s physical and educational needs. We took to having one meal a day just so we could survive. From when I was in middle school, I took up various odd jobs to make a little extra cash. I would deliver newspapers and milk bottles and whatever else was convenient to ease my mother’s load a bit. This way I somehow managed to finish my tenth standard and joined evening PUC. Breaking Point Sometime in the nineties, when I was in my first PU, my mother had a bitter fight with my uncle. He had simply stopped paying us any money. I told her I should take over the saloon and run it myself. She was adamant that I prioritise my education, but I started working at the saloon too and learning the ropes of the business. In the mornings, I would be at the saloon and evenings at college. Then again at night I would return to the saloon, which would remain open till 1 in the morning. Since then I have been called a barber.

Breakthrough Idea Later in 1993, I bought a used Maruti van. My uncle had bought a small car and petty pride made me buy one too. I pooled my tiny savings, took a loan and felt grim satisfaction at having bought a marginally grander vehicle than him. My grandfather had to mortgage his property to enable the loan. The loan interest was six thousand and eight hundred rupees and I was reeling from having to make the payments. The lady whose house my mother used to work, Nandini akka as I like to call her, asked me why I don’t rent out the car instead of it just lying around. She taught me the basics of doing this kind of business. She became like a sister to me and remains a big part of my life even today. She called me to her daughter’s wedding and showed me off! Building a successful business: From 1994 onward I seriously got into the car rental business. The first company I rented it out to was Intel because that’s where Nandini akka was working and she helped arrange it. Gradually, I started adding more cars to the fleet. Till 2004, I only had about five to six cars.

I was focused on getting the saloon business off the ground, so this was not my priority. The business was not doing well as the competition at this level was intense. Everyone had small cars. I thought of getting into luxury cars because that is something that no one else was doing. On Taking Risks: When I was buying my first luxury car, in 2004, everyone told me that I was making a big mistake. Forty lakhs in 2004 for a car, even a luxury car, was a very big deal. I was extremely apprehensive, but simply had to take the chance. I told myself that I would sell off the car if worse came to worst. Fortunately for me, the risk paid off remarkably. No other car rental service had luxury cars of this stature. There were ones who had purchased second hand models and the conditions of those cars were far from pristine. I was the first person in Bangalore to invest in a brand new luxury car and it did very well. You may also want to read How to go from 0 to $1.5 M in six months by selling stones If you want to do business, you must be willing to take risks.

When I bought my Rolls Royce in 2011, people warned me about the scope of failures against buying such a tremendously expensive car. I told myself that I had taken a risk in 2004, why can’t I take one again almost a decade later? It cost me almost four crore rupees, to buy the car. But once again, it was a risk that paid off. It’s been three years since, and it’s has proven to be tremendously popular. In December this year, the EMI payments will be over. Biggest Challenges: Every business will face challenges and pitfalls. Last April, I had to pay over three crores in road taxes alone. I still don’t know how I managed to pull the amount together. I borrowed from so many people and put up property documents to get the cash. Every business will have recurring formidable challenges. The idea is to embrace them wholeheartedly and tackle them vehemently. I had been in the red for a while with the road tax, but in another year or so we will be free of that. Ideas for the Future: Earlier we used to pay taxes quarterly.

As of now, I have had to put a hold on the plans for expansion because the taxes have become sky high. In 2015 we are going to buy some stretch limousines and other such vehicles. Message to Aspiring Entrepreneurs: Ramesh Babu reiterated the simple message to entrepreneurs that he told students to follow in his TED talk. Work hard. Be Humble. Anything else is just luck. Car Brands - Who Owns Jaguar, Volvo, and Chrysler? - Consumer Reports BMW owns: Mini and Rolls Royce. Fiat owns: Alfa Romeo, Chrysler, Dodge, Ferrari, Jeep, Lancia, Maserati, Ram and SRT. Ford Motor Company owns: Lincoln and a small stake in Mazda. General Motors owns: Buick, Cadillac, Chevrolet, and GMC. GM owns a controlling interest in Opel and Vauxhall in Europe and Holden in Australia. (The U.S. Treasury Department is in the process of selling off the remaining GM stock holidngs.) Honda owns: Acura. Tata Motors (India) owns: Jaguar and Land Rover. Mazda mostly independently owned (Ford has small stake) Mitsubishi is independently owned.

Daimler AG owns: Mercedes-Benz and Smart. Nissan owns: Infiniti. (Nissan, in turn, is owned by Renault.) Saab is owned by National Electric Vehicle Sweden (NEVS). Subaru: Owned by Fuji Heavy Industries with Toyota a minority partner. Tesla: Toyota is a minority partner. Partnership with Daimler AG. Toyota Motor Company owns: Lexus, Scion, Daihatsu and Hino Motors, with a stake in Fuji Industries (Subaru's parent company) and Isuzu. Volkswagen owns: Audi, Bentley, Bugatti, Lamborghini, Porsche, and overseas-brands SEAT and Skoda. Volvo is owned by Chinese-automaker Zhejiang Geely Holding Group, aka Geely. —Liza Barth BMW Rolls-Royce Your browser does not support inline frames or is currently configured not to display inline frames. BMW Rolls-Royce BMW is associated with Rolls-Royce. The company is called BMW Rolls-Royce Aero Engines. This joint company makes airplane engines for regional jets, large corporate jets and transport aircrafts.

BMW AG, Mï¿½nchen owns 50.5% and Rolls-Royce plc London owns 49.5% or the company. Seven and a half years since it was formed on July 1st, 1990, BMW Rolls-Royce GmbH has become a leading European manufacturer of civil aero engines. BMW Rolls-Royce GmbH was established as an independent company by BMW AG and Rolls-Royce plc. Rolls-Royce, one of the worldï¿½s leading aeroengine manufacturers, contributes decades of experience in engine design and construction, together with its worldwide service network. BMW provides system-related technical know-how. Direct access to current aviation programmes was assured by acquiring Motorenfabrik Oberursel, itself established as long ago as 1892 and today the headquarters of BMW Rolls-Royce The rotating propeller, BMW's company logo, symbolizes the fact that BMW started its life as an aero engine manufacturer in 1917. Prior to that, German aero engines were being developed and supplied by Motorenfabrik Oberursel, the site now owned and operated by BMW Rolls-Royce GmbH.

BMW later moved to the automobile industry via the development and production of motorcycles. The opposite was the case at Rolls-Royce. The company was established in 1906 as an automobile manufacturer with aircraft engines a later addition. BMW and Rolls-Royce simultaneously but completely independently developed the world's first production jet engines. They were used in 1944 in the German He 162 and in the RAF's Gloster Meteor respectively. Whereas BMW left the aerospace industry in 1965, Rolls-Royce became Europe's major aircraft engine manufacturer - its automobile manufacturing operations were at that time already completely separate. When the Oberursel Motorenfabrik was purchased, its current contracts and business undertakings were honoured. At the centre for small gas turbines at Oberursel, maintenance, repair and overhaul services continue to be performed on engines for civil and military aircraft. In addition, BMW Rolls-Royce produces specific components for Rolls-Royce engines and other civil aero engines. Business in small gas turbines has also been expanded to the civil sector.

The aim of establishing BMW Rolls-Royce was to design, build and certify a new aero engine family, the BR700 series, based on a common core. The concept of a whole family of engines greatly increases the versatility of the project and the likelihood of commercial success. The low-pressure system integrated into the core engine can be adapted to provide the thrust values called for by individual aircraft manufacturers. The core engine, which is identical for all versions of the BR700, has a ten-stage high-pressure compressor, an advanced combustion chamber and a two-stage high-pressure turbine. The BR710 has a 48 inch fan and a 2 stage low-pressure turbine. It has a thrust of between 14,000 and 17,000 pounds (62-75.6 kN). The low-pressure system of the BR715 engine consists of a 58 inch wide-chord fan with a two-stage booster, plus a three-stage low-pressure turbine.

The BR715 has a thrust range of bewteen 17,000 and 23,000 pounds (75.6-102.3 kN), depending on the aircraft's specification. The BR710 engine is the first engine ever to be developed and produced in Germany by a German company and receive international certification. The BR710 engine is designed to power the new generation of large, ultra long-range corporate jets. It is also ideally suited for 80 - 100 seater regional aircraft. The more powerful BR715 is optimised for 90 - 140 seater regional jets and large transport aircraft. In 1992 the BMW Rolls-Royce BR710 was selected by Gulfstream Aerospace of Savannah/Georgia, U.S.A., as the sole engine for the Gulfstream V large, ultra long-range business jet with an initial order of 200 BR710 engines at 14.750 lb thrust.

Only six months later, the Canadian manufacturer Bombardier of Montrï¿½al/Quï¿½bec, Canada, chose the BR710 exclusively to power the Bombardier Global Express large, ultra long-range corporate jet. Today BMW Rolls-Royce is the sole supplier of engines in this market segment. In 1994 the BR715 engine was selected as the sole powerplant for the McDonnell Douglas MD-95 aircraft programme and in October 1995 the U.S. carrier AirTran Airlines (formerly ValuJet Airlines became the launch customer for both the engine and the aircraft when it placed a firm order for 50 MD-95 aircraft and 110 BR715 engines with options for a further 50 aircraft. On the 8. January 1998, the Boeing Company renamed the aircraft 717-200 and introduced it as the newest member of its commercial aeroplane family.

In July, 1996, the BR710 engine was chosen to power the Nimrod 2000, the British Royal Air Forceï¿½s maritime patrol aircraft, as part of a comprehensive modernisation programme involving the replacement of the propulsion systems. The order is for 87 marinised engines and it brought the company's total order volume to over 2.5 billion deutschmarks. Throughout seven and a half year history BMW Rolls-Royce has met its deadlines in its very demanding time schedule. The core engine ran for the first time on August 14, 1993. This was followed, on September 1 1994 by the first run of the first full engine version, the BR710, right on schedule, at the company's high-tech development, test and assembly centre for the BR700 family in Dahlewitz. On August 14th 1996, on schedule, BMW Rolls-Royce reached its most important milestone to date when the BR710 engine received approval from the European Joint Aviation Authorities. This was followed a month later by Certification from the U.S. Federal Aviation Authorities in September.

The engine is now in service powering the Gulfstream V corporate jet. On October 13th, 1996, the Bombardier Global Express corporate jet powered by BR710 engines had its maiden flight. It is now undergoing an eighteen month flight test programme before entering into service in spring 1998. Rated at 18,500 pounds thrust with an optional increase of up to 21,000 pounds thrust, the BR715 engine for the Boeing 717-200 ran for the first time on 28. April 1997 and the first engine was shipped for delivery to the Douglas Products Division of Boeing Commercial Airplane Group in Long Beach, California. Certification of the engine is scheduled for autumn 1998 followed by Entry into Service powering the 717-200 in mid 1999. In June 1997, during the Paris Airshow, BMW Rolls-Royce signed an agreement with the Russian aircraft manufacturer Tupolev to power its Tu-334 100-seater regional jet with BR710 engines.

The BR715 engine is also being offered for the Chinese AE31X and the Indonesian IPTN 2130 100-seater aircraft. A BR700 turboprop engine with 9,000 - 12,000 shaft horsepower is being proposed for the new European Future Large Aircraft military transporter. The History of the Rolls-Royce Century The History of the Rolls-Royce Century The History of the Rolls-Royce Century Rolls-Royce Silver Ghost in the early 1920s. Rolls-Royce Motor Cars By Kristen Hall-Geisler Rich Man, Poor Man: Rolls and Royce were in fact people before the history of Rolls-Royce as a company every began. Frederick Royce was a British electrical equipment manufacturer who built the first Royce cars in 1904. The three two-cylinder, 10-hp cars he built attracted the attention of Charles Rolls, a longtime car enthusiast from way back in 1894 and son of a baron. He owned a dealership in London, where he first encountered a Royce. He was so taken with the engineering that he partnered with the car's creator.

Royce would built the cars, and Rolls would sell them. See the image gallery for more. Racing for Recognition: Like many manufacturers of the day, Rolls entered the first Rolls-Royces in races in order to promote them. These cars were similar to the first one built by Royce. Real fame came with the 1907 introduction of a 6-cylinder engine inside a silver-painted four-passenger chassis dubbed "The Silver Ghost." This car was driven 15,000 continuous miles with little wear, cementing the R-R reputation for reliability. Unfortunately, Rolls' passion for excitement ended in 1910, when his biplane (based on the Wright brothers' flyer) crashed and killed him almost instantly. War and Peace and War Again: The Silver Ghost chassis, built in Derby, U.K., was toughened with armor so it could serve as a combat car in Flanders, Africa, Egypt, and with Lawrence of Arabia during WWI. In the Jazz Age that came after the war, people had money to spend on these reliable Rollers.

There were Silver Ghosts built in Springfield, Mass., from 1920-1924, and a smaller 20-hp "Baby Roller" was introduced. Big cars were still popular, though, with the Phantoms I, II, and II all appearing in the 1920s. During WWII, the company built Rolls-Royce Merlin airplane engines in a facility in Crewe, U.K., rather than cars. Post-War Rollers: After the war in Europe had ended and Rolls could go back to building automobiles, they brought out the 1946 Silver Wraith. Sweeping coachwork for the car came from famed designers like Mulliner, Park Ward, and others. The 1950s saw the very long-wheelbase of the Phantom IV and the rounded shape of the Silver Cloud on the roads. The Silver Cloud II had the company's first V8 engine, and the updated Silver Cloud III appeared in the '60s. The Phantoms V (for the American market) and VI (for Europe) were also sold in the '60s. The all-new, slab-sided, V8 Silver Shadow debuted in 1965.

Those Slippery Seventies: It seems most exotic car makers hit a rough patch in the 1970s, Rolls-Royce included. Due to expensive aircraft engines, the company sought assistance from the British government, who took over the airplane engine division. Rolls-Royce Motors at Crewe divorced from Rolls-Royce Limited at Derby. (Anyone who's Googled "Rolls-Royce" has likely found the wrong web site at least once.) The revived company rallied with the Corniche, the Camargue, the Silver Shadow II, and the Silver Wraith II, all of which hit the market by 1979. Big Hair and Big Cars: Rolls-Royce entered the Me Decade with the Silver Spirit and Silver Spur, both of which were massive, squared-off, ultra-luxury automobiles that dripped wealth in the '80s. As I'm sure you've guessed by now, Silver Spirits II and III and Silver Spurs II and III appeared in the '80s and '90s. In 1998, the all-new Silver Seraph was launched, with a V12 engine under its long nose. Happy 100th Birthday!

(And Many More): Rolls-Royce celebrated its 100th anniversary in 2004, and the centenary of its most famous car, the Silver Ghost, in 2007. In 2003, after ending its partnership with Bentley, the company produced an all-new Phantom, available as a sedan, coupe, or convertible. A limited-edition Phantom Silver was issued in 2004 to mark the company's uninterrupted 100-year run. Cars to come include the new, smaller RR4, a "Baby Roller" in the tradition of the 20HP of the 1920s. And to set the record straight: the red enamel radiator badge was changed to black during the Phantom II period, before the death of Henry Royce. What About Bentley?: Rolls-Royce acquired Bentley in 1931, when W.O. Bentley's company was facing an uncertain financial future. Rolls-Royce and Bentley parted ways in 2002. Volkswagen at this point owned Rolls-Royce, who owned Bentley.

BMW came in and bought the Rolls-Royce name, freeing VW to develop Bentleys independent of Rolls, which it was happy to do. Bentley aficionados refer to these six decades as "the blackest of all." BMW of Germany Will Buy Rolls-Royce - The New York Times The New York Times Business Day |BMW of Germany Will Buy Rolls-Royce Search Continue reading the main story Correction Appended Rolls-Royce, Britain's legendary manufacturer of hand-burnished luxury automobiles and a cherished symbol of national pride, is about to be sold to the German car company BMW. The company's current owner, Vickers P.L.C., announced today that BMW had submitted a top bid of $:340 million, or $571 million, in a six-month auction. The big losing bidder was Volkswagen A.G., followed by a British investment firm and a very dismayed consortium of Rolls-Royce enthusiasts who had hoped to rescue their beloved company from foreign hands. British Rolls-Royce loyalists proclaimed themselves shocked and in grief, and some vowed to fight back with a higher offer.

''BMW makes nice little cars, but they are not luxury cars,'' snorted Michael Schimptom, who heads one of two groups of Rolls-Royce fans and had been trying to assemble his own bid when he got the news this morning. A rival group of Rolls-Royce fans did submit a bid, but were outgunned by Bayerische Motoren Werke A.G. If the sale is completed as planned, Britain's last domestic automobile manufacturer will be in foreign hands. The Ford Motor Company acquired Jaguar and Aston-Martin in the 1980's, and BMW acquired Rover in 1994. Continue reading the main story Though Rolls-Royce is a minuscule player when ranked by sales in the world automobile market -- it produced only about 1,900 cars last year for about $250,000 apiece -- its stature as a global brand, a status symbol and as a British national institution is special. Advertisement Continue reading the main story Rolls-Royces have been owned and beloved by the former Shah of Iran, Elvis Presley, Lawrence of Arabia and, of course, the British royal family.

John Lennon, the late Beatle, bought a Silver Shadow in the 1960's and had it painted it in psychedelic colors. Through all the ups and downs of global competition and the British empire, the company somehow managed to sustain the image of hand-assembled cars built for kings and nobility. After nearly going bankrupt in the early 1970's and then being acquired by Vickers for $:38 million in 1980, the company had slowly battled its way back to profitability. But Vickers, a manufacturer of military equipment, announced last fall that it would sell the car business and focus on its core businesses. Both BMW and Volkswagen now want to enter the rarefied niche market of super-luxury automobiles. Mercedes, owned by Daimler-Benz A.G., is pushing in the same direction with plans for a line of big sedans called the Maybach around 2000. BMW executives said today that they wanted to invest about $1.6 billion in Rolls-Royce over the next 10 years, double the work force of 2,600 at the Rolls-Royce plant in Crewe, England, and introduce two new automobile lines.

The company provided few details but analysts inferred that the new models would be a bit less expensive and sportier than traditional Rolls-Royces. BMW has said it can triple the number of cars it sells to about 6,000, and that it can generate big savings by improving the way Rolls-Royce purchases parts. Industry executives said today that the Rolls-Royce auction had proved surprisingly competitive, though it quickly became clear that Volkswagen and BMW were the only automobile companies with an active interest in bidding. BMW executives had originally said they thought Rolls-Royce was worth about $:150 million, then raised their estimates to about $:250 million and finally weighed in last Thursday with a bid of $:340 million. Investors reacted coolly to BMW's victory. BMW shares initially jumped 30 marks, or $16.40, to 2,120 marks, or $1,158, on the Frankfurt Stock Exchange, but then settled back to 2,060 marks. Analysts said the Rolls-Royce purchase would have little meaningful impact on the company's overall performance.

BMW's sale and earnings have soared in the last year, thanks largely to a big surge in exports in response to a stronger American dollar. A stronger dollar, relative to the German mark, makes German cars less expensive in America. Although both Vickers and BMW portrayed their agreement as tantamount to a done deal, it is still possible that disgruntled losers in the auction will mount a counterattack. Advertisement The main critics are Rolls-Royce enthusiasts in Britain, who loathe the idea of selling one of Britain's crown jewels to a German company. Please verify you're not a robot by clicking the box. Invalid email address. Please re-enter. You must select a newsletter to subscribe to. Sign Up Privacy Policy ''After Coca-Cola, this was probably the world's largest marque, and now the British are losing it,'' said Peter Baines, head of the Rolls-Royce Enthusiasts Club. A professional pilot who bought his first Rolls-Royce nearly 30 years ago when he was 26, Mr. Baines said that the consortium of Rolls-Royce customers and managers had been optimistic about buying the company as recently as a few days ago. But the loyalists had fallen into squabbling among themselves. Mr.

Schimpton, who had originally organized the bidding consortium, split from the group a month ago. At that point, the remaining group of loyalists allied themselves behind Kevin Morley, a former chief at Rover. Mr. Morley, with solid credentials in the automobile industry, organized what amounted to a proposal for a management buyout. Mr. Schimpton spent much of the last month trying to raise money for a separate bid of his own. He failed, but vowed to come back with a higher bid. Vickers said the BMW offer was the highest bid, and that serious contenders should have known that time was running out. But equally important, BMW is a prestigious producer of high-priced cars and it already has business ties with Rolls-Royce. BMW produces the engines and other components in the new Silver Seraph. Mr. Schimpton said today that BMW components were inherently out of place in a Rolls-Royce. The controls for the air-conditioning in the Silver Seraph, he said, come from BMW and are ''cheap and nasty.'' And he complained that the BMW engines run at much higher revolutions per minute, in contrast to the slower engines with bigger cylinders in a traditional Rolls-Royce.

''That's the secret to the Rolls -- relaxed long-distance cruising with a big, lazy engine,'' he said. Vickers executives respond that all bidders had a fair chance to submit offers, but that they had a strong preference for selling the company to a well-established automobile manufacturer that could carry the motorcars into the next century. Advertisement Continue reading the main story ''The last thing we want is for Rolls-Royce to become a hobbyist' club,'' said Brigitte Daniels, a spokeswoman for Vickers in London. ''The most important thing is to make sure that this great name carries on for as many more years as it has already. Prestige was also a crucial issue, because the Rolls-Royce name is still partly under the control of a separate company, Rolls-Royce P.L.C., which is the aerospace company that was separated from the car company more than two decades ago. Rolls-Royce P.L.C. has the right to block the transfer of the Rolls-Royce name to any non-British company. As it happens, BMW has a separate joint venture with the Rolls-Royce aerospace company.

This prompted concerns last fall that the two companies might try to engineer an unjustifiably low price for BMW. That did not happen. Alec Shutze, an automobile industry analyst at Merrill Lynch in London, said BMW was paying a fair price that was in the middle range of his expectations. Correction: April 1, 1998, Wednesday An article in Business Day yesterday about the sale of Rolls-Royce to BMW described the state of the British auto industry incorrectly. Several small British-owned companies build sports cars, taxicabs and limousines in Britain. Rolls-Royce is not the last British-owned domestic auto maker. The error also appeared in a front-page summary of the story. Who owns whom in the car industry? Who owns whom in the car industry? BMW Z4 . [ source ] The world of car manufacturers is a complicated one. The corporations want to obscure some of their lines to maintain brand separation, but also want to keep you somewhat aware of them so as to leverage the history and goodwill they've tried so hard to attain over the years.

BMW didn't need any special British technology to build a cheap runabout like the Mini, but it did need the name in order to give them an excuse to make a cheap runabout in the first place and to have their car be seen as the next generation of the classic Mini. NOTE: With the collapse of the car industry in 2009-2009, a lot is changing in the way of ownership. This article will no longer be updated and will instead serve as a kind of snapshot of the industry on the brink of change. BMW BMW is a Munich, Germany-based company. It purchased Mini in 1994 (along with the rest of the Rover Group, which it eventually sold to Nanjing) and Rolls-Royce in 2003 (Bentley went to Volkswagen). The BMW family includes BMW, Mini, and Rolls-Royce. It no longer makes cars under the Isetta name. Chrysler Chrysler is an Auburn Hills, Michigan-based company. From 1985 to 1991, it was allied with Mitsubishi in what was at the time called the Diamond-Star Alliance.

Chrysler bought AMC from Renault in 1987, mainly for the Jeep line but failed to popularize the renamed Jeep-Eagle division. Chrysler merged with Daimler Benz in 1998. In 2007, it was sold to a private equity firm and reorganized, but Daimler retains a substantial share. UPDATE: 2009.04: Fiat is planning to take over Chrysler and buy Open from GM. The Chrysler family includes Chrysler, Dodge, and Jeep. It no longer makes cars under the Plymouth and Eagle names or the AMC name. Daimler (Mercedes-Benz) Daimler is a Stuttgart, Germany-based company. In 1885, founders Gottlieb Daimler and Karl Benz invented the motorcycle and the automobile, respectively and separately, prompting them to form a company together. The Daimler family includes Mercedes-Benz, Maybach, and Smart. Fiat Group Fiat is a Turin, Italy-based company. In 2005, it broke ties with GM. It has formed ties with Tata that has created Fiat India. In 2009, it began an attempt to take partial ownership of Chrysler.

The Fiat family includes Fiat, Alfa Romeo, Lancia, Ferrari, and Maserati. Ford Ford Motor Company is a Dearborn, Michigan-based company. It owns 30% of Mazda. The Ford family includes Ford, Mercury, Lincoln, and Volvo. It sold Aston Martin in 2008 to an international consortium. It sold Jaguar and Land Rover to Tata in 2008. General Motors General Motors Corporation is a Detroit, Michigan-based company. In 2005, GM increased its share of GM Daewoo to own controlling interest. UPDATE: 2009.05: GM is planning to sell Opel to Fiat. The General Motors family includes Saturn, Chevrolet, GMC, Hummer, Cadillac, Buick, Pontiac, Saab, Vauxhall, Holden, Opel, and GM Daewoo. It no longer makes cars under the Oldsmobile name. Honda Honda Motor Company is a Tokyo, Japan-based company. The Honda family includes Honda and Acura. Hyundai Hyundai Motor Company is a Seoul, South Korea-based company. It bought Kia in 1998. The Hyundai family includes Hyundai and Kia.

Isuzu Isuzu Motors is a Tokyo, Japan-based company. Since 1971, it has had a close relationship with General Motors bordering on being subsidiary. The Isuzu line stands alone as the company's passenger vehicle line and, as of 2009, will not be sold in the US. Mazda Mazda Motor Corporation is a Hiroshima, Japan-based company. The Mazda line stands alone, but Ford owns a 30% share of Mazda. Mitsubishi Mitsubishi Group is a Tokyo, Japan-based company. It separated from its Diamond-Star Alliance with Chrysler in 1991. It has strong ties to Peugeot. The Mitsubishi line is the sole passenger vehicle line of Mitsubishi. Nanjing (MG) Nanjing Automobile Corporation is a Nanjing, China-based state-owned company. It has significant ties with Fiat. Nanjing bought MG Rover in 1999. The NAC family includes MG, Austin, and Yuejin (light trucks). Peugeot PSA Peugeot Citroén is a Paris, France-based company. It has strong ties to Mitsubishi. The Peugeot family includes Peugeot and Citroén lines. Porsche - Volkswagen Porsche is a Stuttgart, Germany-based company.

Volkswagen Group is a Wolfsberg, Germany-based company. Porsche owns about 45% of Volkswagen and is in the process of acquiring a majority share. The Porsche line is distinct but heavily involved with Volkswagen lines. UPDATE: 2009.02: Porsche has acquired a majority share of Volkswagen in what will come to be considered a legendary financial coup in which it made billions of euros at the same it acquired the other company. UPDATE 2009.11: Whoops! Porsche's enormous leverage crippled them when car sales bottomed out, and Volkswagen has now acquired them instead! The Volkswagen family includes VW, Audi, Skoda, SEAT, Spyker, Scania, Bugatti, Bentley, and Lamborghini. It also owns the Auto Union name. Renault - Nissan Renault is a Boulogne-Billancourt, France-based company. Nissan is a Japan-based company. Nissan and Renault formed an alliance in 1999, with Renault owning about 45% of Nissan, but they remain distinct operating entities. The Nissan family includes Nissan and Infiniti. It no longer makes cars under the Datsun name.

The Renault line is distinct from Nissan lines and was allied with AMC and acquired a controlling interest in 1982 but sold it to Chrysler in 1987. Renault owns a substantial share of Russian automaker VAZ, which makes the Lada line. Fuji Heavy Industries (Subaru) Fuji Heavy Industries is a Tokyo, Japan-based company. The Fuji family includes Subaru as its only passenger vehicle line. Suzuki Suzuki Motor Corporation is a Hamamatsu, Japan-based company. The Suzuki line stands alone. Tata (Jaguar and Land Rover) Tata Motors is a Mubai, India-based company. Tata bought the truck division of Daewoo, while the car division went to GM. Tata bought JLR from Ford in 2008. The Tata family includes Tata, Tata Daewoo, Jaguar, Land Rover, and the Jaguar subsidiary Daimler (not to be confused with Daimler-Chrysler). Toyota Toyota Motor Corporation is a Tokyo, Japan-based company. The Toyota family includes Toyota, Lexus, Scion, and Daihastu. VAZ VAZ is a Tolyatti, Russia-based company. Lada is the only passenger vehicle line in the VAZ family.

Micromanufacturers Ariel is a Crewkerne, UK-based company that makes the Atom sports car. Koenigsegg is an Angelholm, Sweden-based company that makes high-performance sports cars. Tesla Motors is a San Carlos, California, USA-based company that makes the Tesla Roadster electric sports car. TVR is a Blackpool, UK-based company that makes TVR sports cars. f e e d b a c k Respond to this page by your e-mail client . Please be sure to mention the title of the article. SSgt Kevin Bianchi writes: Does Chrysler still own the rights to the AMC name and logo? Yes, I'm pretty sure. They haven't used it since the late '80s, as far as I can tell, but I'm pretty sure they haven't sold it. —RG

Question: Who now owns the Rolls-Royce name?
Answer: BMW